Cross-border payment: Fees, methods, and how it works

Key takeaways

• Cross-border payments involve multiple fee layers. Transfer fees, intermediary bank charges, and FX markups can add up fast for businesses making regular international transfers.

• The SWIFT network isn't the only option. Local payment rails are often faster and cheaper for many corridors, though what's available depends on the destination country and currency.

• Airwallex routes over 94% of transfers through local rails rather than SWIFT. That means lower fees and faster settlement for Hong Kong businesses paying suppliers or receiving funds globally.

Hong Kong merchants usually use secure, reliable, and reputable traditional banks for international payments, but that usually comes with expensive charges. Do you know what other fees traditional banks charge and how long it takes for the remittance? Are you aware of the impact of high exchange rate on each transaction? This guide walks through the mechanics, the fees, and the options available to Hong Kong businesses in 2026.

What is a cross-border payment?

A cross-border payment is a financial transaction where the sender and recipient are in different countries. For businesses, cross-border payments are how you pay overseas suppliers, receive money from international customers, and manage cash across multiple markets. They're more complex than domestic transfers because different countries use different currencies, banking systems, and regulatory frameworks, and all of those need to connect for the payment to go through.

Types of cross-border payment

• B2B (business-to-business). Businesses paying suppliers, contractors, or subsidiaries abroad, for example, a Hong Kong importer paying a mainland China manufacturer for goods.

• B2C (business-to-consumer). Businesses receiving payments from overseas customers, for example, a Hong Kong eCommerce brand receiving USD from customers in the United States.

• C2C (consumer-to-consumer). Individuals sending money to family or friends in another country, for example, a Hong Kong resident sending money home to the Philippines.

This guide focuses mainly on B2B payments, because they're the most relevant for Hong Kong businesses managing supplier relationships and international operations.

How cross-border payments work

When you send money across borders, it rarely travels straight from your bank to the beneficiary’s. Instead, it’s routed via one or more correspondent banks that link different banking systems. Each stop on that route follows its own cut-off times and processing rules, which is why transfers can take days. Those intermediaries may also deduct handling fees, so the recipient can receive less than you intended.

The SWIFT network explained

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging standard banks use to exchange payment instructions.

Because SWIFT messages often rely on correspondent banking, participants may apply their own fees and FX rates. That can reduce the amount that arrives and make the true cost higher than the headline transfer fee. Banks typically add a markup above the interbank rate, though the exact margin varies.

Local payment rails as an alternative

Local payment rails are domestic clearing networks in each country that can sometimes be used instead of SWIFT for cross-border transfers. When they're available, they're usually faster and cheaper because they cut out the correspondent bank chain.

• FPS (Faster Payment System). Hong Kong's real-time payment system, supporting transfers in HKD, CNY, and EUR.

• CHATS. Hong Kong's large-value clearing system for HKD and USD.

• SEPA. The Single Euro Payments Area network for EUR transfers within Europe.

Not every corridor has a local rail option, and availability depends on the destination country and currency. But when local rails do exist, they can cut both cost and settlement time significantly compared with SWIFT.

What does a cross-border payment cost?

The true cost is usually higher than the headline transfer fee. Expect some or all of the following charges on a single cross-border payment:

• Sending bank fee. A flat or percentage fee charged by your bank to initiate the transfer.

• Intermediary bank fees. Deducted as the payment moves through the correspondent banking chain. Each intermediary may take a handling fee from the principal.

• Receiving bank fee. Charged by the beneficiary’s bank when the funds arrive.

• FX markup. The margin your provider adds above the interbank rate when converting currency, often the largest cost, even when other fees look low.

If a payment passes through multiple intermediaries, the beneficiary can receive less than intended. Exact charges vary by provider, corridor, and currency, so check current fee schedules before you transfer. For businesses making frequent international payments, even small FX markups and per-transfer fees can add up quickly.

Who pays the fees?

The remittance fees can be borne either by the sender or the receiver. Typically, these fees are deducted from the remittance amount or paid separately during the transfer. When filling out a remittance application form, you will often come across the following options:

1. SHA: The remitter pays the remittance fees charged by the remitting bank, and the recipient covers the charges by the intermediary bank and the receiving bank.

2. BEN: The recipient pays for all domestic and international fees associated with the transfer.

3. OUR: The remitter pays for all domestic and international fees associated with the transfer.

4. Full payment: This ensures that the entire remittance is transferred to the receiving bank. However, if the bank charges an inward remittance fee, the recipient is still responsible for the remittance fee

SHA is the most common default, because it splits costs between the sender and recipient. OUR is often preferred when you're paying suppliers who expect to receive the full invoice amount, because it avoids awkward conversations about why the payment arrived short. BEN puts all costs on the recipient, which can strain supplier relationships if they weren't expecting deductions.

So it's worth understanding who pays what before you commit to a transfer method, because the total cost is often higher than the headline fee suggests.

Pros and cons of bank wire transfers

Traditional bank wire transfers are still the most common way to make cross-border payments, and they do have genuine strengths. But they also come with structural limits that are worth understanding before you decide how to send money.

Benefits of using traditional bank transfers

1. Multiple processing channels

Traditional banks typically offer at least three ways to process remittances, including branch offices, online banking, and mobile apps. This allows you to choose the most suitable channel based on your personal needs.

2. Remittance tracking service

Some banks, such as HSBC and Hang Seng Bank, provide remittance tracking services. You can instantly check the progress of your remittance by logging into online banking or the mobile app.

Disadvantages of using bank wire transfers

1. Local banks set the exchange rate, which leads to higher costs

FX rates set by traditional banks are typically more expensive than market rates. This means that even if a currency drops at some point, most people are unable to make the remittance at their desired market exchange rate. Therefore, even if some banks offer free wire transfer fees, they cannot offset the high FX spread. 

2. Cross-border transfer generally takes longer

International payments usually require processing through a correspondent bank, which acts as an intermediary to help customers remit funds to the local beneficiary bank. Several correspondent banks may be required to complete the remittance for some regions that are loosely connected to Hong Kong. With different time zones and cutoff times for each currency at the clearing institutions, traditional banks generally take 1 to 5 working days to complete remittances. If you opt to make the wire transfer at the branches of the same bank, the remittance procedures can be expedited and may be completed immediately.

3. Daily transfer limits complicate the transfer process

In order to safeguard the security of accounts, there are daily limits for traditional bank wire transfers. Generally speaking, there are two types of limits: Unregistered payees and registered payees. Since banks need time to process the application of registered payees, larger-scale businesses who want to make large wire transfers should register the payee information in advance.

On top of the daily limits, individual banks have different restrictions on international remittances in different currencies. It is recommended to check the latest wire transfer limits and currency restrictions on the bank’s official website.

How Airwallex streamlines cross-border payments

Airwallex has emerged as a renowned all-in-one financial and remittance platform. With global infrastructure established worldwide, Airwallex uses local rails to facilitate overseas transfers for clients. This approach allows for the potential savings of multiple fees, such as SWIFT network charges and intermediary bank fees.

With an Airwallex Business Account, you can transfer with over 90+ different currency pairs to 200+ countries at favourable FX, with no minimum transaction amount and exchange fees in a small markup as low as 0.2% above the interbank exchange rate.

How fast can Airwallex complete cross-border payments?

Airwallex only needs as fast as one business day to process your international transfer requests. The actual completion time depends on several factors, such as the payment method, the recipient's bank address, and the transaction date.

Steps to transfer with Airwallex

1. Log in to your Airwallex WebApp.

2. Top up your account if your account balance is insufficient.

3. Click “Transfers” in the left-hand menu.

4. Fill in the recipient's information (name, country or region, address and city), bank account details, and select the transfer method (local transfer, or SWIFT wire transfer).

5. Choose the payment currency, and enter the amount.

6. The payment summary will show the applicable FX and detailed fees.

7. Check that the information and amount are correct, confirm the transfer, and receive an email notification.

Frequently asked questions

How long do cross-border payments take?

Traditional bank wire transfers using the SWIFT network usually take several business days, depending on the destination and the number of correspondent banks involved. Platforms that use local payment rails can often complete transfers the same day or even instantly for many corridors. The exact timing depends on the payment method, destination country, and cut-off times.

What fees are involved in cross-border payments?

Cross-border payments usually involve multiple fee layers: the sending bank's transfer fee, potential intermediary bank charges, the receiving bank's inward remittance fee, and the FX markup on currency conversion. The FX markup is often the biggest cost, but it's less visible than the headline transfer fee. Total costs vary significantly depending on the method and provider you use.

Is Airwallex's cross-border transfer secure?

Airwallex is secure and reliable. Airwallex is regulated by the Hong Kong Customs and Excise Department and holds a Money Service Operator (MSO) license (No. 16-09-01929). Additionally, Airwallex has registered or obtained authorised licences from regulatory institutions in several overseas countries, including the United States, the United Kingdom, Australia, Canada, Malaysia, New Zealand, Singapore, and more.

What information and documents are needed to open an Airwallex account?

Airwallex only provides services for corporate clients and does not currently offer personal account services. However, certain businesses such as investment companies, pharmaceutical companies, and charitable organisations are not eligible to apply for Airwallex account services. Opening an Airwallex account is simple and only requires the following documents: Certificate of Incorporation (CI), Business Registration (BR), and the identification documents of authorised agents. For more details, please visit here. You can start using our service after account verification, which generally can be completed within 24 hours, and up to 3 days.

What are the benefits of opening an Airwallex Business Account?

Airwallex offers services such as payment collection and cross-border payments, which can be conveniently done through our website and app. With an Airwallex Business Account, you can transfer globally in 90+ currency pairs, with no minimum transaction amount and exchange fees at a small markup as low as 0.2% above the interbank exchange rate. Transfers can be completed in as quickly as one business day.

Which currencies are supported by Airwallex Business Accounts?

Airwallex supports multiple currencies, including USD, GBP, CNY, EUR, and many more.

Does Airwallex Business Accounts charge any account opening fees?

No, Airwallex does not charge any account opening fees, nor do they have a minimum balance requirement.

In addition, businesses can open Global Accounts in 90+ countries, and monitor all cash flows on a single platform. It only takes a few minutes to open an account online, without the need to visit a bank in person.